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Posted in Auto Loans
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Question By
Beavz0r

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Dose increasing the down payment after approval for an auto loan require another approval?
It's sort of a unique situation -- I was approved yesterday for $27,000.00 @ 0.9% over 5 yrs in financing towards a new car with $20,000.00 as a down payment (I've been driving a used Saturn since high school, so I've had time to save). However, the car is technically on back order and won't arrive until four to eight weeks from now, and I was curious as to whether or not increasing the down payment by another $2000.00 to $5000.00 (lowering the amount I actually need financed) would require a second approval and result in an additional hard credit inquiry. Or whether it's even advisable, since the interest is so low and the current monthly payments will still be very manageable even at that amount financed.

I was also considering getting a second credit card to use exclusively for gas -- should I apply now, or wait until the loan shows up on my account later this year?

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Wait until you get the car,in my opinion

Helpful to 7 out of 8 people

Is there a penalty to pay off the loan early on the loan contract? If not, just put that extra cash down on your first monthly car payment.

If there is a penalty, see how much it is and figure out if it's something you can deal with, or you will just have to deal with making the original payments. Most auto loans allow you to pay it off early with no penalty, but it's good to make sure.

Credit card for gas - It would be a good idea to wait to get that card depending on how many 'hard inquiries' you have on your credit reports. The more of them you have, the more risky it looks to credit card issuers. They stay on your reports for two years, but only affect your credit for one year.

If your credit is above 650 and you have less than 3-4 hard inquiries, you should still have good odds of getting aprroved for the card right away.

Another piece of advice on that, you may want to research a lot of different credit cards because there are so many different 'rewards cards' out there and you will want to find the one that best suits your needs.

Just make a search online for 'best rewards cards' or 'gas credit cards' and check them all out. You might find a card that is completely different, but does better for you than a regular gas card. Not only that, getting a gas card restricts your rewards to that specific gasoline company when you will probably use it at all kinds of places.

I hope this helps :)

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Helpful to 3 out of 3 people

Two things.

1) Lenders have a minimum amount they are willing to finance, if your loan approval isn't through a credit union then I suggest you try one of them with the $22k down. At an actual dealership they will likely not be able to loan on only $5k.

2 ) If the car isn't arriving for a while, then you will have to reapply for the loan when it arrive. DO NOT open any new credit lines in mean time or you credit score will drop.

,

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